Earnings Release • Feb 7, 2013
Earnings Release
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Key third quarter developments:
In the third quarter of financial year 2012/2013, Holland Colours achieved 8% higher sales compared to the same period last year. Exchange rate developments of mainly the US Dollar had a positive impact on sales development in this quarter of approximately 3%. In addition, the company benefited from positive changes in the sales-mix, as well as from margin improvements.
Although slightly negative, Holland Colours ended the third quarter with a net result that is better than the net result over the same period last year. This quarter, all divisions exceed previous year on both sales and net profit. Especially the division Americas had a strong third quarter.
The operating costs on a like-for-like basis were approximately 6% higher in the third quarter than last year, of which approximately 2% is caused by exchange rate differences.
In the third quarter, the focus market Building & Construction realized a marked growth in sales compared to the third quarter of last year. The sales increase came mainly for the account of divisions Europe and Americas, whereas sales in division Asia showed a modest decrease in this focus market.
In the focus market Packaging, sales were significantly higher compared to the third quarter of financial year 2011/2012. Division Europe and mainly division Americas realized a considerable sales increase in this focus market.
Also in the focus market Silicones & Elastomers, sales were strongly higher this quarter than last year. A marginal sales decrease in division Americas was more than compensated by a marginal sales increase in Asia and a strong sales increase in Europe.
At the end of December 2012, net working capital was significantly lower than last year, mainly influenced by lower inventories. The inventory turn in days improved in the third quarter.
Supported by an improvement of the net result and a decrease of the net working capital, the company's Total Debt / EBITDA ratio end of December 2012 improved compared to December 2011, and stayed well within the covenant as agreed with the bank. Also the other bank covenants have been met.
Unforeseen circumstances left aside, Holland Colours expects higher sales and a higher net result for 2012/2013 compared to financial year 2011/2012. The results for this financial year will be announced on May 29, 2013.
Apeldoorn, February 7, 2013
Rob Harmsen Marco Kok Tineke Veldhuis - Hagedoorn
Holland Colours NV Rob Harmsen President Telephone: +31 (55) 3680700
Holland Colours was founded in 1979 and has been listed on the NYSE Euronext Amsterdam Stock Exchange since 1989. It is an independent Dutch corporation with offices in North America and Mexico, Europe and Asia. Holland Colours makes products for colouring synthetic materials, the main products being Holcobatch and Holcoprill. Both these products have the advantage of being free flowing, dust-free, and very easy to dose. Furthermore, Holland Colours makes pastes for colouring silicones, elastomers, PET packaging and other applications.
Holland Colours concentrates worldwide on three focus markets:
Around 80% of sales is realized in these three markets.
Virtually the entire production is generated by our four principal plants in the Netherlands, Hungary, the United States and Indonesia.
Holland Colours is organized in three regional divisions that operate as profit centers in each specific region: Europe (including the Middle East and Africa), Americas and Asia. The global sales distribution is Europe 55%, Americas 30% and Asia 15%.
August 15, 2013 Trading update
May 29, 2013 Publication of the 2012/2013 results July 11, 2013 General meeting of shareholders October 31, 2013 Publication of the half year results 2013/2014
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